The Week On-Chain, Week 08, 2025

Bybit’s historic $1.48B hack triggered panic withdrawals and a market-wide sell-off, pushing Bitcoin to $87K, 20.2% below its ATH. As a result, new investors faced severe unrealized losses, and with the STH-MVRV at 0.95, loss realization intensified. Without a strong demand catalyst, the downtrend may continue.

Executive Summary

🔸Bybit Hack: A smart contract exploit drained 403,996 ETH (~$1.13B) from Bybit’s cold wallets, triggering $4.3B in outflows across Bitcoin and stablecoins.

🔸Market Sell-Off: Sentiment collapsed, with Bitcoin down -13.6%, Ethereum -22.9%, Solana -40%, and Meme Coins -36.9%, resetting momentum to April 2024 levels.

🔸Bitcoin Weakness: The drop pushed BTC into the $70K-$88K realized supply “air gap,” initially driven by long-term holder sell-offs and worsened by the Bybit hack.

🔸STH Pressure: STH-MVRV at 0.95 shows recent buyers 5% underwater, with profitability down 15.8%, signaling heavy unrealized losses.

Discover more in the latest Week On-Chain